EUR: Possibly attempt tiny longs at 1.4400; stop below 1.4280

Nicole Elliott from Mizuho Corporate Bank at 12/17/09

Comment: US dollar bulls getting very excited as we see the biggest correction since March. Where we will stabilise in thin year-end markets is problematic but ought to be against retracement support.

Strategy: Possibly attempt tiny longs at 1.4400; stop below 1.4280. Short term target 1.4650, then 1.4850.

Comment: Stopped dead in its tracks at early October levels in a potential inverted ‘pennant’ at the lower edge of a very broad band that has held for most of this year. Momentum is neutral though and the Euro is not oversold.

Strategy: Sell at 129.65, adding to 130.65; stop above 131.65. Add to shorts on a sustained break below 129.00 to cover ahead of 127.00.

Comment: Holding up better than many though slapped down at the top of a widening Ichimoku ‘cloud’. We continue to watch for signs of forming an interim base but remain wary of thin year-end markets.

Strategy: Possibly attempt small longs at 1.6215; stop below 1.6100. First target 1.6325 then 1.6600.

Comment: Back up at the top of the ‘triangle’ and a thin Ichimoku ‘cloud’. Let’s see if these hold today and until the end of the week. Very thin markets mean things are more likely to unravel and get messy

Strategy: Possibly attempt small shorts at 90.08; stop above 91.00. Short term target 89.00, then 88.00.